You're in the business of moving goods from point A to point B. But the vehicle or vehicles that transport those goods are big, heavy, fast and move among vast herds of much smaller vehicles-smaller vehicles operated by drivers of questionable skills.
You know from experience that accidents happen. And if one occurs involving your truck, your insurance may not cover all the expenses and damages the accident victims may seek. You need to protect your assets and finances. How can you do that? By forming a corporation or LLC. It's a common way to protect both you and your personal assets.
We have been helping people form Delaware companies to protect their assets for more than three decades. However, we are not a law firm and cannot give legal advice. Please consult an attorney if you need legal advice on this matter.
Learn more below about why many truck drivers choose to form a corporation or LLC, plus how to incorporate your truck. You can also read about our special discount for truck drivers!
You likely have liability insurance to protect you in the event of an accident but it will often only protect so much if a lawsuit occurs. The fact is, plaintiff's attorneys won't stop at the limits of your insurance if the claim is large enough. If you're operating as a sole proprietorship, your personal assets—your truck, home, cars, bank accounts, real estate, and more—are typically at risk.
If you are sued for an accident that wasn't your fault, it may help to be incorporated in Delaware. A Delaware corporation or LLC provides another layer of protection that complicates the plaintiff's lawyer's task. This extra layer of protection may cause the lawyers to reconsider suing you personally, or may be an inducement for them to attempt to reach a settlement.
We have specialized in Delaware business formations for more than 30 years. By choosing Harvard Business Services, Inc. as the company to help you make informed decisions about incorporating in Delaware, you'll join thousands of other savvy people who have turned to Delaware as the home of their LLC or corporation to help them protect their personal assets.
As an added perk, we also offer an extra five percent discount off all incorporations for members of OOIDA! Simply visit our easy-to-use incorporation order form and type in the code "OOIDA" to claim your discount. You'll be done in just a few minutes!
The smart way to protect your assets is to form a Delaware corporation or Delaware LLC and purchase your truck in that company's name. Doing so would make your truck the property of your company, and therefore it would not be considered your personal property. This creates a layer of separation between your truck and your personal assets.
If you own one truck...
There are several ways to incorporate a truck, but here is one example of how it might work: Form a Delaware LLC and purchase your truck under that company's name. This protects you on two levels: Your truck is out of reach in the event of a lawsuit aimed at you personally, and your personal assets are out of reach in the event of a lawsuit involving your truck.
If you own multiple trucks...
Some truck owners will incorporate their business and place ownership of all of their trucks in that one business. While this is preferable to a sole proprietorship, it puts the other trucks at risk in the event of a lawsuit involving one truck.
Here is one strategy to consider if you own more than one truck:
The overarching entity is a Delaware subchapter S corporation. This is your operating company, the one you use with your customers and suppliers, and all payments flow into this company. This subchapter S corporation separates your trucking business from your personal assets but it doesn't own any of the trucks.
Instead, each truck is owned by and titled in the name of a separate Delaware LLC and then leased to your operating company under a separate contract. With this structure, if one truck is involved in a lawsuit, the other trucks can keep operating. Why use LLCs? They are pass-through entities with strong liability protection. If you set them up correctly, you typically won't need to file separate tax returns for each LLC.
These are just a few examples of how truck owners can employ the same legal protection strategies used by the biggest companies in America. It may not be an exact fit for everyone, so it would be wise to consult with your lawyer or accountant first, and then rely on us to handle the details of filing and maintaining your company.
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